Taxing Your Federal Retirement in Arkansas

(An Initiative for tax reform in Arkansas for Federal retirees and survivors)

February 2009

The rally/press conference for the Arkansas State Tax Initiative took place on Thursday, January 15th 2009. It was estimated that from 125 to 150 NARFE members from all over Arkansas were in attendance. The sight of all those colorful ribbons could not help but gather attention. The proposal will remain available at PROPOSAL and if it is updated, you will be so advised. Additional reasons for presenting the proposal may be viewed at EXTRA. In case some of us may have to return to the Capitol for Committee hearings, the map of Capitol parking will remain at MAP.

You may read or print a working copy of the proposed legislation by clicking HERE  Please send your comments to
Wally Sheldon, Winston Wolfe or George Wilken.

On February 11, 2008, a committee composed of Charles Schmeider, Winston Wolfe, Jim Geisler, Jim Kuzilik, Carl and Jean Garner, Jim Jones and George Wilken, met with Representatives Randy Stewart and Lance Reynolds at the State Capitol. After some discussion, it was decided to withhold the bill for now to do an Interim Study, in essence to gather more information about why a tax relief bill for retirement income should be submitted. A bill will then be submitted to the Arkansas Legislature in the 2010 session.

For a chronology of the events up to this time, click HERE.

For the time being, since the bill has been withdrawn for study, there is no need to write your Arkansas Representative or Arkansas Senator. We will advise when the time is right.

The Arkansas Federation of NARFE has begun an initiative to lobby the Arkansas State Legislature to reduce the taxes on federal retirees. This initiative will culminate with a gathering at the Arkansas Capitol in January 2009. A committee has been formed at the Executive Board meeting on February 22, 2008, to develop the strategy for this initiative. The committee is being led by Legislative Chair Wally Sheldon of NARFE Chapter 1547 in Bella Vista and Winston Wolfe of NARFE Chapter 0093, Little Rock. Any comments or suggestions should be sent to Wally at wsheldonbv@cox.net. Chapters will be asked to send representatives to a rally in January 2009 for this initiative. Keep track of what is happening through this website.

Why is this initiative being undertaken?

 In 2007, the Arkansas Legislature worked on two bills, House Bill 1336 (HB1336) and Senate Bill 179 (SB179). Here is what happened in each chamber of the legislature. The title of both bills was "An Act to Increase the Amount of the Retirement or Disability Benefits Income Tax Exemption".

House Activity

January 29, 2007 Bill was filed

January 29, 2007 Read the first time, rules suspended, read the second time and referred to the Committee on Revenue and Taxation in the House.

February 1, 2007 Returned by the Committee with a DO PASS.

February 5, 2007 Read the third time and passed and ordered transmitted to the Senate. Clincher motion adopted.

Senate Activity

January 23, 2007 Bill was filed.

January 24, 2007 Read first time, rules suspended, read second time, referred to Senate Committee on Revenue and Taxation in the Senate.

February 5, 2007 Received from the House.

April 3, 2007 Withdrawn from committee and placed on calendar. Recommended for study in the Interim Committee on Revenue and Taxation.

May 1, 2007 Died in Senate Committee at Sine Die adjournment.

Merits of the Bill

If this bill is passed, it will offer an incentive to retirees from other states to retire in Arkansas. It should be noted that surrounding states have already passed bills to reduce or eliminate taxation on retiree income and others have no state income tax at all. Both Oklahoma and Missouri are phasing in tax relief over a number of years for retirees.

The Bill as Presented in the 2007 Session. The bill consists of three pages and a fourth page of signees. Click HERE

Copy of Proposal for Arkansas Legislature Members

Chapters are asked to contact their Arkansas State Legislature representatives in November and ask them to support the proposal. The number of the bill in each chamber will be placed on this webpage at a later date, along with more details about the January meeting.

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